Oracle Financial Analytics Implementation Methodology

Glenn Kretkowski, Hologic Inc. Sravan Daggupati, Apps Associates LLC.

About Speakers
Glenn Kretkowski
Director- Business Applications at Hologic, Inc. Manage the Applications Support and Report Development Team at Hologic, Inc

Sravan Daggupati
Practice Manager, at Apps Associates LLC. Manage the OBI Applications Implementation and support.

Hologic Inc
Hologic, Inc. (NASDAQ: HOLX) is a leading developer, manufacturer and supplier of premium diagnostics, medical imaging systems and surgical products dedicated to serving the healthcare needs of women. Hologic leads the industry in digital mammography systems and offers the most advanced technology for breast imaging and breast biopsy. Hologics core business units are focused on breast health, diagnostics, GYN surgical, and skeletal health. Hologic provides a comprehensive suite of technologies with products for mammography and breast biopsy, radiation treatment for earlystage breast cancer, cervical cancer screening, treatment for menorrhagia, osteoporosis assessment, preterm birth risk assessment, and mini c-arm for extremity imaging.

Apps Associates LLC

Making Global Delivery Feel Closer To Home

Offices in USA, Germany and India Founded in 2002 with >100 % growth every year for last 5 years: Inc. 500 list of fastest growing U.S. companies Over 250 employees (end of Q3 2008) with strong local presence Management & Sr. Consultants: 75% former Oracle employees

Agenda
Introduction Stakeholders Roadmap
Proof of Concept Gap Analysis Customizations Reconciliation Security

Conclusion Q&A

What is Oracle Financial Analytics

Oracle Financial Analytics, part of Oracle Business Intelligence Applications, enables the finance and accounting department to improve the cash flow, lower the costs, and increase the profitability. Monitor DSOs and cash cycles to manage working capitals, collections, receivables risk. Monitor DPOs and asses cash management, monitory operational efficiency to lower the transaction cost. Manage financial performance across locations, customers, products, and territories. Key performance Indicators and hundreds of reports help to understand the profitability drivers across organization.

Whats in Financial Analytics

GL Subject Areas
Subject Area
Financial GL Balance Sheet

Description
This is a summary subject area that provides the ability to draw a complete balance sheet as well as many financial ratios to understand the financial health of the company. Further this subject area provides the ability to slice and dice GL balances by GL accounts, GL segments, company and chart of accounts. This subject area provides the ability to report expenses by company, cost center, GL accounts, GL segments and comparison with budget to perform variance analysis.

Financials GL Budget & Expenses

Financials GL cash Flow

Financials GL Detail Transactions

This subject area provides the ability to draw a complete cash flow statement at the company level as well as any other business unit by which cash flow can be constructed.
This subject area provides the ability to analyze the GL transactions by various dimensions such as GL account, cost centers, GL segments, chart of accounts and more.

GL Dashboard

GL Reports
Cash Flow Summary Expenses by Category Top 10 cost centers by expenses Operating cycle & Cash Cycle Net Working Capital Summary Monthly Balance Sheet Quarterly Balance sheet Monthly Cash Flow Quarterly Cash Flow Expense vs. Budget by cost center Budget vs. Actual by GL Account and Cost Center Net Working Capital Gross Margin and Cash Margin Payables Turnover Receivables Turnover Inventory Turnover Long Term Assets Turnover Total Assets Turnover Short-Term Liquidity (Current ratio) Short-Term Liquidity (Quick Ratio) Days Cash in Hand Cash Ratio (Cash to CL) Capital Expenditure Coverage Debt to Equity Interest Coverage Debt Coverage Debt to Asset Total Liabilities Composition GL account Balance Current Assets Composition Current Liabilities Coverage Days Payables Outstanding Days Sales Outstanding Expense Details for Cost Centers Inventory Days Total Cost Centers Expense Trend Total Expenses Trend Working Capital Turnover

Profitability Subject Areas

Subject Area
Financial Profitability Company

Description
This is a summary subject area that provides the ability to analyze the company profitability such gross margins, operating margins, return on assets as well as ability to construct complete income statements. The income statements and the financial ratios can be analyzed by company, business units and associated hierarchies. This subject area provides the ability to analyze customer profitability at the gross margins as well as operating margin level. Some of the costs at the operating margin level are the allocated costs which are captured in the data model. This subject area provides the ability to analyze product profitability at the gross margins as well as operating margin level. Some of the costs at the operating margin level are the allocated costs which are captured in the data model.

Financials Profitability Customer Financials Profitability Product

Profitability Dashboard

Profitability Reports
Profitability Returns Profit & Loss Quarterly Cost Breakdown Product Gross Margin Customer Gross Margin Profit & Loss Quarterly Profit & Loss-Quarterly YTD Profitability Returns Trend Key Cost Ratio Trends Return on Asset Drivers Return on Equity Drivers Revenue Trend Revenue Performance by product category Top 10 Products by Revenue Top 10 Customers by Revenue Revenue Performance by products and customers Product Profitability by Product Category Product Profitability Statement Top 10 Rev. Contributing Products with Margins Direct vs. Allocated expenses for products Top 10 lowest margin products Top 10 Products by operating margin 10 Least profitable products Top 10 products by Marketing Investments Top 10 Products by sales expenses Top 10 Products by service expenses Customer Profitability by Customer category Customer Profitability Statement Direct vs. Allocated expenses Top 10 Customer by expenses Top 10 Customer by operating profit Top 10 Customer by sales expenses Top 10 Customer by service expenses Top 10 Customer by Marketing expenses

Receivables Subject Areas

Subject Area
Financials AR Balance Financials AR Invoice Aging

Description
Analysis of AR Balances by Company, Customer, Customer Accounts, GL Accounts and associated hierarchies. This is a detailed subject area that provides summary aging balances as well as the ability to drill down to invoice transactions. Provides aging analysis from two different perspectives, one with respect to invoice date and the other one with respect to payment due date. The one with payment due date provides analysis of cash flow expected by those due dates. This subject area also provides due and overdue balances aged by predefined buckets. Further this subject area provides the ability to drill down from these aging balances to invoice transactions.

Financials AR Overview

This is a summary subject area that provides the ability to report on aging, payment performance, customer balances, due and overdue balances, transaction cycle times across customers, company, customer accounts and associated hierarchies. This detailed subject area provides the ability to analyze invoice accounting transactions at the most granular level.

Financials AR Transactions

Receivables Dashboard

Receivables Reports
AR Largest Customer Overdue Balances Invoice Transaction Efficiency AR Overdue Payments Overview Payment Performance Aging Report AR Aging by Customer Category Top 10 Customers by AR Balance Top 10 Customers by Credit Limit Used % AR Payments Due Aging Report AR Payments Overdue Aging Report Top 10 Customers by Overdue Balances Top 10 Customers by Payments Due in Current Quarter AR Payments Due in Payment Month Top Multiple Invoice Issuances for Same Sales Order Top 10 Customers by Average Payment Days Staff Productivity Report Aging Report by Collector Number of Adjustments Invoice Transaction Efficiency Invoice Management Efficiency Payment Performance Invoice Amount vs. Payment Amount Top 10 Customers by Payments Trend of Credit Limit Used % AR Due Aging Report AR Overdue Aging Report Open Invoice Details Invoice Transaction Details Top 10 Customers by # of Invoices DSO Monthly Trend

Payables Subject Areas

Subject Area Financials AP Balance Financials AP Invoice Aging Description Analysis of AP Balances by company, supplier, supplier accounts, GL Accounts and associated hierarchies This is a detailed subject area that provides summary aging balances as well as ability to drill down to invoice transactions. Provides aging analysis from two different perspectives, one with respect to invoice date and the other one with respect to payment due date. The one with payment due date provides analysis of cash flow expected by those due dates. This subject area also provides overdue balances aged by predefined buckets. Further this subject area also provides ability to drill down to invoice transactions from aging balances This is a summary subject area that provides the ability to report aging, payment performance, supplier balances, transaction cycle times across suppliers, company, supplier accounts This detailed subject area provides the ability to analyze invoice accounting transactions at the most granular level.

Financials AP Overview Financials AP Transactions

Payables Dashboard

Payables Reports
Payables Snapshot AP Aging Report AP Aging by Supplier Group AP Payments Due Aging AP Payments Overdue Aging Report Top 10 Suppliers by Payments Due in Current Quarter Top 10 Suppliers by Overdue Amounts AP Payments Due by Payment Due Date Top 10 Suppliers with lowest average payment days AP Payments Overdue Aging Report by Supplier AP Payments Due in Payment Month (By Supplier) Top 10 Suppliers by Paid Before Due Count Invoice Transactions Efficiency Top 10 Suppliers by # of Invoices Top 10 Suppliers by AP Balance Staff Productivity Report Number of Adjustments Top 10 Payments by Suppliers DPO Monthly Trend DPO Monthly Trend by Supplier AP Aging Report by Supplier AP Payments Due Aging by Supplier Payment Performance by Supplier Open Invoice Details AP Transaction Details Payment Performance Invoice Transactions Efficiency

Roles benefiting

Implementation Core Team

Functional (Finance, Accounting, Receivables, Payables Business)
Business Owner (PT) Analysts (PT) Users (PT)

Technical
BI Project Manager (PT) ETL Developers (FT) OBIEE Developers (FT)

Methodology
Project Initiation Configure to First Run Business Review Redesign and Customize Reconciliation and User Acceptance Security User Training Production Support and Change Control

Roadmap

OBIA Components
Training Integration Security Presentation Catalog BI Repository Prebuilt Warehouse- OLAP Data Warehouse Administration Console Prebuilt ETL Processes OLTP- EBS, PSFT, Siebel CRM, Others

Prebuilt Warehouse

Prebuilt warehouse with more than 15 star-schemas designed for analysis and reporting on Financial Analytics

Prebuilt ETL

Prebuilt ETL to extract data from over 3,000 operational tables and load it into the DW, sourced from SAP, PSFT, and other sources.

Data Warehouse Administration Console

Oracle Business Analytics Warehouse

Prebuilt Metadata

Pre-mapped metadata, including embedded best practice calculations and metrics for Financial, Executives and other Business Users.

Gap Analysis
Account Groupings Viewing Sub ledger Details Inter-Company Transactions Expense Reports Impact of Application Customizations. Incorrect Data at Source

Customization
Exclude or Include Inter company transactions, Expense reports Adding Discount information to the Payables Changing the groupings for P&L, Balance Sheet. Micro ETLs for Intra day loads. Additional Reports based on DFF attributes.
Customizing dashboards to slice data by Site, divisions.

Security
Data level security
Operating Unit Ledger

Shared Responsibilities between Oracle E-Business Suite & BI Applications Login once to E-Business Suite Launch OBI dashboards from E-Business Suite. Guided Navigation & Action Links from OBI to EBusiness Suite Integrating with Portal Application.

Reconciliation
Oracle Seeded Reports Discoverer Views Automating Reconciliation with custom scripts

OLAP to OLTP
Dashboards to OLAP

Conclusion
Influence the Business results with right information at right time. Optimize Decision making process based on the facts and single source of truth. Adhere customization guidelines to preserve as part of upgrades or patches. Automate Reconciliation. Secure data reporting.

& A
Glenn.Kretkowski@Hologic.com Sravan.Daggupati@AppsAssociates.com